Freight rates dampen scrapping trend

Better-than-expected dry bulk freight rates have done little to encourage shipowners to scrap their older vessels, despite warnings of ongoing market volatility due to a lack of scrapping activity. The Baltic Dry Index (BDI) hit 1773 points in the first week of August, compared to 1250 in the opening week of June, making owners increasingly reluctant to ditch their older tonnage. According to a report by Allied Shipbroking, only three dry bulk vessels were scrapped in the latter half of August. “As we enter the final part of 2018, a resurgence in demolition activity, which has retreated over the course of the summer months, would be very welcome, in order to further alleviate overtonnage issues in various parts of the shipping market,” added Hellenic Shipping News.

Meanwhile, in the UK Eureka Shipping has established a new multipurpose floating bulk terminal at the Port of Tilbury in southeast England, under a four-year agreement with Cemineral and London Container Terminal. Cemineral will use the terminal to supply fly ash to the construction market in the southeast of the country. The 125m-long Vesper terminal has a 10,000t capacity and is designed to receive bulk powder from both self-discharging pneumatic cement carriers and bulk vessels in a dust-free manner, according to Dry Cargo International.

“We are experts in handling bulk materials and, coupled with our strategic location, this makes us a natural point for distribution,” said Peter Ward, commercial director at the Port of Tilbury. “Serving the whole UK market, we have excellent transport links to and from London and across the southeast where over 50 per cent of the population live and work.”